UFP Technologies Inc (UFPT)

Return on total capital

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	57,547	55,543	66,538	61,832	55,480	49,506	28,510	22,378	21,276	21,540	20,192	16,927	16,365	18,251	20,640	24,055	24,321	22,926	22,794	22,099
Long-term debt	US$ in thousands	28,000	39,000	53,000	56,000	51,000	67,000	96,000	91,000	71,000	—	—	—	0	—	—	—	—	12,143	13,857	19,286
Total stockholders’ equity	US$ in thousands	286,091	272,383	260,285	246,484	237,545	226,159	207,290	199,078	194,446	190,753	186,314	180,819	176,893	172,439	169,212	166,275	161,991	155,889	149,654	144,499
Return on total capital		18.32%	17.84%	21.24%	20.44%	19.23%	16.89%	9.40%	7.71%	8.02%	11.29%	10.84%	9.36%	9.25%	10.58%	12.20%	14.47%	15.01%	13.64%	13.94%	13.49%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $57,547K ÷ ($28,000K + $286,091K)
= 18.32%

UFP Technologies Inc has shown a fluctuating pattern in its return on total capital over the past five quarters. The return on total capital ranged from a low of 7.71% in March 2022 to a high of 21.24% in June 2023. Overall, the return on total capital has shown an upward trend, with an average of 13.66% over the 20 quarters analyzed.

The company's return on total capital was consistently above 10% in the most recent quarters, indicating efficient utilization of its total capital to generate profits. This suggests that the company is effectively managing its capital investments and generating attractive returns for its shareholders.

However, it is important to note that the return on total capital can be influenced by various factors such as profitability, capital structure, and asset utilization. Therefore, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of UFP Technologies Inc's performance in utilizing its total capital effectively.